RESOLUTION

ONGOING IMPLEMENTATION OF MAJOR DUTIES AND MEASURES TO IMPROVE BUSINESS ENVIRONMENT AND ENHANCE NATIONAL COMPETITIVENESS IN 2020

GOVERNMENT

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the National Assembly’s Resolution No. 142/2016/QH13 dated April 12, 2016 on the 5-year socio-economic development plan for the 2016 – 2020 period; the National Assembly’s Resolution No. 85/2019/QH14 dated November 11, 2019 on the 2020 socio-economic development plan;

Upon the request of the Minister of Planning and Investment,

HEREBY RESOLVES

I. REVIEW OF CURRENT SITUATION

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In 2019, most of Vietnam's general rankings have been improved. National competitiveness has increased by 3.5 points and moved up 10 places [1], including 8 out of 12 pillars raising points and multiple places. The index of creative innovation [2] has moved up 3 places, including 6 out of 7 groups of pillars raising points. The index of business environment has been improved by 1.2 point[3]. Tourism competitiveness has been moved up to 4 places.[4]

However, the quality of our business environment and competitiveness are ranked low, standing at the 5^th or 6^th place amongst ASEAN countries, and need to be robustly reformed to reach the objective of being ranked in the top 4 ASEAN countries[5].

In order to create a drastic change in the business environment, improve competitiveness and labor productivity as a way to contributing to the successful achievement of objectives and tasks of the socio-economic development plan in 2020 according to the Resolution of the National Assembly, the Government issues this Resolution following the Resolution No. 02 (2019) and the Resolutions No. 19 (2014-2018) on improvement of the business environment and enhancement of national competitiveness.

II. MAIN GOALS AND INDICES REGARDING IMPROVEMENT OF BUSINESS ENVIRONMENT AND ENHANCEMENT OF NATIONAL COMPETITIVENESS IN 2020

1. Overall goals

Continue to implement overall objectives and specific goals scheduled towards 2021 according to Resolution No. 02 / NQ-CP dated January 1, 2019 on continuing to implement key tasks and solutions to improving the business environment and enhancing national competitiveness in 2019 with vision towards 2021. In particular, in 2020, strive to achieve the goal of improving places on the ranking as follows:

a) Business environment according to the EoDB ranking (released by WB) [6] is expected to move up 10 places.

b) Competitiveness ranked according to GCI 4.0 (released by WEF)[7] is expected to move up 5 places.

c) Creative innovation ranked according to GII (released by WIPO)[8] is expected to move up 3 -4 places.

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2. Certain specific indices:

a) Regarding improvement of business environment according to EoDB in 2020:

- Move the index of business startup (briefly called A1) up 10 – 15 places.

- Improve the ranking of Tax and Social Insurance Contribution Payment (A2) by 7 – 10 places.

- Improve the score and maintain the ranking of construction permit index (A3); shorten the actual waiting time for grant of construction permits to 120 days.

- Improve the score and maintain the ranking of the index of Credit Access (A4).

- Improve the index of Investor Protection (A5) by 7 – 10 places.

- Improve the score and maintain the ranking of the index of Electricity Access (A6).

- Improve the ranking of Property Registration index (A7) by 10 to 15 places; shorten the actual waiting time for property registration to no more than 30 days.

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- Improve the ranking of Contract dispute resolution index (A9) by 5 – 7 places.

- Improve the ranking of Business bankruptcy resolution (A10) by 7 - 10 places.

b) Regarding improvement of competitiveness according to GCI 4.0 in 2020:

- Improve the score and maintain the ranking of Law compliance cost index[10] (briefly called B1).

- Improve the ranking of Land administration quality[11] (B3) by 5 – 7 places.

- Improve the rankings of Information technology application indices[12] (B5) by 2 - 3 places.

- Improve the ranking of Vocational training quality index[13] (B6) by 5 - 10 places.

- Improve the ranking of the index of Growth in innovative enterprises[14] (B9) by 3 – 5 places.

- Improve the ranking of the index of Companies embracing disruptive ideas[15] (B10) by 2 – 3 places.

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1. Ministries, industries and localities continue to fully, consistently and effectively implement tasks and solutions according to specific objectives and indices set out in Resolution No. 02/NQ-CP dated January 1, 2019.

2. Ministries shall be assigned to act as the focal point to monitor the sets of indicators, ministries or agencies assigned to preside over and take responsibility for indices and component indices:

a) Review and finalize documents, organize training and give instructions to ensure that ministries, agencies and localities have a proper, complete and consistent understanding of the goals, index sets, index groups and component indices and report forms or templates. Issue Manual or supplementary Action Plans (if necessary) before February 15, 2020.

b) Continue to support, examine and evaluate the situations and results of implementation hereof at ministries, branches and People's Committees of provinces or centrally-affiliated cities (hereinafter referred to as provincial-level People's Committees); propose and petition the Government and the Prime Minister to give their directives for the settlement of issues beyond their competence.

c) Proactively coordinate with provincial-level People's Committees in getting connected with relevant international organizations; provide and fully update necessary information to ensure an objective and accurate evaluation or ranking; carry out external communications to introduce annual evaluation and ranking results.

d) Before June 20 and December 20, 2020, consolidate the results of implementation of assigned indicators for 6 months and a year, and send them to the Ministry of Planning and Investment (Central Institute for Economic Management) and the Government Office to integrate them into the general report on the situation and results of implementation of the Resolution. The report should have contents adhering to the requirements of the Resolution; elaborate on the initiatives and reforms that have been implemented and the results achieved, including assessment of the impacts caused by time and cost reductions for the convenience of businesses; clarify problems and difficulties arising in the implementation process, and give proposals and recommendations (if any).

3. Making ongoing efforts in improving scores and rankings of business environment indices.

a) Regarding entrepreneurship

- In the first quarter of 2020, the Ministry of Finance recommends amending the Government’s Decree No. 139/2016/ND-CP dated October 4, 2016 on licensing fees in the aim of extending the deadline for declaration and payment of licensing fees to January 30 of the following year; supervise the implementation of regulations on external/internal invoice printing procedures and invoice issuance notice within 4 days as prescribed (including application for permission for externally/internally printed invoices is processed within 02 days; issuance of invoices is informed within 02 days). Application for purchase of invoices shall be processed within the day. The use of electronic invoices shall be promoted in accordance with the Government's Decree No. 119/2018/ND-CP dated September 12, 2018, stipulating electronic invoices on sale of goods and provision of services.

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- The Ministry of Planning and Investment shall be tasked with continuing to improve the draft Enterprise Law (amended) with the aim of abolishing or simplifying unnecessary and inappropriate procedures in order to shorten the time and cost of market entry. This task will have been completed before being reported to the National Assembly in the meeting to be held in May 2020.

b) Regarding grant of construction permits

- Ministries and provincial People's Committees continue to strictly implement the Prime Minister's Directive No. 08/CT-TTg dated March 13, 2018 on strengthening the implementation of measures to shorten the duration for grant of construction permits and other related procedures; supervise and strengthen discipline in handling administrative procedures; by March 20, 2020, review and performance assessment reports shall be sent to the Ministry of Construction and the Ministry of Planning and Investment (Central Institute for Economic Management) before a consolidated report is sent to the Prime Minister.

- The Ministry of Construction shall review the process and procedures for grant of construction permits in order to shorten the time for grant of construction permits, construction inspection and examination to no longer than 50 days; study and propose application of risk management methods in construction investment activities in order to reduce the number of inspections and the frequency rate of approval; this task must be completed in the third quarter of 2020.

c) Regarding credit accessibility

- The State Bank of Vietnam must continue to effectively implement measures to maintain the credit information depth index; direct credit institutions to create favorable conditions for the mass and businesses to have access to credit facilities in a fair and transparent manner.

- Ministry of Justice is expected to fulfill the following tasks in the 4^th quarter of 2020, including:

+ Study and propose amendments and supplements to the Decree providing instructions for the 2015 Civil Code's provisions on secured transactions, including finalization of regulations on secured transaction registration and payment priority order, etc. with the aim of simplifying the regulations on application documents, and implement registration, revision, amendment, supplementation and deletion of registration of security provided online.

+ Cooperate with the Ministry of Natural Resources and Environment, other concerned ministries and sectors in completing legal bases for electronic transactions regarding land, including registration of security in the form of land use rights and land-attached assets.

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d) Regarding asset registration

- The Ministry of Natural Resources and Environment:

+ Assume the prime responsibility for, and cooperate with the Ministry of Finance and relevant agencies in, proposing and guiding localities to apply necessary solutions to shorten the time for carrying out procedures for granting certificates in ownership of land-attached construction works, procedures for transfer of home ownership and procedures for registration of land use rights to ensure compliance with current regulations. This task will have been completed in the second quarter of 2020.

+ Collaborate with the Supreme People's Court in studying and proposing specific solutions to the public disclosure of data on land dispute settlement; shortening of the duration for handling cases of land disputes. This task is expected to be completed in the second quarter of 2020.

- Presidents of provincial-level People’s Committees

+ Direct and supervise the settlement of administrative procedures at localities under their jurisdiction, ensuring conformity with prescribed procedures, processes and time.

+ Prioritize funding for completion of cadastral surveying and mapping with coordinates prescribed according to the National Assembly's Resolution No. 39/2012/QH13; report to the Ministry of Natural Resources and Environment on such completion by March 20, 2020.

dd) Regarding contract dispute resolution and corporate insolvency resolution

The Ministry of Justice shall provide instructions on the implementation of solutions to improve the contract dispute resolution and corporate insolvency resolution indices; propose amendments to the Law on Enforcement of Civil Judgments to simplify procedures, shorten time and reduce costs of civil judgment enforcement. Collecting legal costs in non-cash form.

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4. Substantially reforming regulations on business requirements

a) Ministries and ministry-level agencies:

- Update, disclose and publicize administrative procedures related to grant of certificates of conformance to business regulations which have been streamlined in 2018 and 2019; reveal the comparison chart of business requirements before and after being invalidated or simplified; this task must be completed in January 2020. With administrative procedures relating to issuance of certificates of conformance to business regulations which will be streamlined from 2020 onwards, ensure that disclosure and publication thereof must strictly conform to regulations on control of administrative procedures.

- Research and propose amendments to laws related to repeal and simplification of business requirements prescribed in specialized laws according to approved plans.

b) Ministry of Justice shall be tasked with improving quality of assessment of issued investment and business requirements included in draft Laws and Decrees that ensure conformance to regulations laid down in the Law on Investment and Decrees regarding business and investment requirements.

c) Presidents of provincial-level People’s Committees shall direct full and due compliance with streamlined business requirements; shall not be allowed to impose additional business requirements in any form of their own free will; strictly punish public officers or servants who do not fully and duly comply with new business requirements.

d) Ministry of Planning and Investment shall preside over and cooperate with the Government’s Office in making review and assessment reports on results of comprehensive reforms of regulations on business requirements by ministries, sectors and localities; report to the Prime Minister by December 20, 2020.

5. Continuing to carry out the comprehensive reform of specialized administration and inspection, and make connections to national or ASEAN single-window systems.

a) Ministries and ministry-level agencies:

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- Finish reviewing and substantially cutting 50% of products on the list of goods subject to specialized inspection requirements[16]. In the first quarter of 2020, fully disclose and publish on websites of ministries the list of goods subject to specialized administration and inspection requirements with their corresponding HS codes, enclosing the comparison chart of these goods before and after the number of such goods are cut down from the list.

- In the 2^nd quarter of 2020, build complete organizational structures of concerned ministries provided that each product undergoes the specialized inspection by only one presiding entity.

- Accelerate the progress in carrying out tasks assigned under the Prime Minister’s Decision No. 1254/QD-TTg dated September 26, 2018 on grant of approval of plan of action for promotion of national single-window system, ASEAN single-window system, reform of specialized inspections over imports and exports and trade facilitation for the period of 2018 – 2020.

- Fully implement assigned functions in carrying out specialized inspections in accordance with the Government's Decree No. 85/2019 / ND-CP dated November 14, 2019, stipulating the implementation of administrative procedures under the national or ASEAN single-window mechanisms, and specialized inspections of imports and exports.

b) Ministry of Finance:

- Prepare general programs for construction and development of centralized information technology systems for the purpose of implementing the national and ASEAN single – window mechanisms for submission to the Government to seek its approval.

- Carry out the drastic reform of customs procedures towards digitization, electronic customs, in accordance with international standards; assume the prime responsibility for elaborating a scheme on specialized inspection reform along the direction that customs offices are the focal point for specialized inspection at border gates (except for goods related to security, defense, quarantine, etc.). ), specialized management ministries carry out post-inspection; submit to the Government in the first quarter of 2020

- Study and propose solutions to immediately solve long-term problems in applying taxes on excess materials and supplies from export manufacturing and processing.

- Take charge of monitoring the situation and assessing results of specialized management and inspection reforms; assessing the degree of change and impact on import-export enterprises; report to the Prime Minister by December 20, 2020.

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- Implement the principles of risk management, priority channeling and mutual recognition in specialized management and inspection of aquatic product import and export activities; guide and distinguish between phytosanitary and safety inspection of food; provide clear and specific guidance on the inspection methods (especially the sensory tests), ensuring these methods are implemented consistently, and preventing businesses from being liable for unnecessary costs.

- Take charge of or cooperate with the Ministry of Finance in reviewing and amending the Circular No. 285/2016/TT-BTC on calculation of veterinary fees and charges in order to reduce unreasonable costs for enterprises.

d) Ministry of Transport shall be responsible for studying, proposing and implementing measures to constrain inconsiderate setting of and increases in carriage fees and port surcharges.

6. Stimulating cashless payments and providing level-4 online public services

a) Ministers and Heads of ministerial-level agencies shall direct the provision of at least 30% of level-4 online public services under their jurisdiction; allow people and businesses to make cashless payments by using various means; integrate the cashless payment function into the National Public Service Portal according to the prescribed schedule; boost up receiving applications and informing decisions on whether applications are accepted through public postal services.

b) The Ministry of Information and Communications shall accelerate the process of granting licenses to use 2.6GHz band for deploying 4G network to telecommunication enterprises in accordance with the provisions of law; before June 20 and December 20, 2020, sending review reports prepared on results achieved in 6 months and a year to the Ministry of Planning and Investment (Central Institute for Economic Management) and the Government Office to prepare a general assessment report on results of implementation of the Resolution.

c) State Bank of Vietnam:

- Take charge of, and cooperate with the Ministry of Justice and relevant agencies in, studying and appealing the Prime Minister to issue a Decision on piloting the use of telecommunications accounts to pay for small-value services (Mobile -Money), piloting new payment service models in the absence of related legal provisions to ensure timely management, especially for cross-border payments. This task must be completed in the 4^th quarter of 2020.

- Prepare evaluation reports on the results of the implementation of the Program for development of non-cash payment in Vietnam for the 2016-2020 period, promulgated under the Prime Minister's Decision No. 2545/QD-TTg dated December 30, 2016; propose measures to promote non-cash payments in the coming time. This task must be completed in the 4^th quarter of 2020.

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dd) The Ministry of Education and Training shall direct all training and educational establishments to coordinate with credit institutions and intermediaries in payment of tuition fees in non-cash payment form; by the end of 2020, 100% of training and educational establishments in urban areas are expected to accept payment of tuition via banks; encourage these establishments to build, standardize databases, upgrade technical infrastructure to connect, share information with banks, and collect fees in electronic form.

e) The Ministry of Labor, War Invalids and Social Affairs and Vietnam Social Insurance shall, within its competence, formulate and promulgate guidelines, standards and roadmap for standardization of data and information on recipients of retirement pensions, social insurance covers and other social security benefits to connect and share information sharing with credit institutions and payment intermediaries in order to pay social security benefits, retirement pensions and social insurance covers via banks.

Vietnam Social Insurance shall direct provincial Social Insurance agencies to mobilize and encourage pensioners and receivers of social insurance benefits through non-cash payment means with the goal of reaching 50% of persons receiving retirement pensions, social insurance covers, burial and death insurance benefits, etc. using non-cash payment instruments in urban areas.

The Ministry of Labor, War Invalids and Social Affairs shall lead provision of education and instructions and support for beneficiaries to receive allowances through non-cash payment instruments, ensuring that at least 30% of urban residents having access to such instruments by the end of 2020.

g) The Ministry of Public Security shall assume the prime responsibility for building a database on handling administrative violations in the field of traffic safety; uniformly applying the taxonomy of fines for administrative violations (designation of ID codes); connecting and sharing fine collection information with the State Treasury, commercial banks and enterprises assigned to manage public postal networks, provide public postal services and relevant units; using non-cash payment methods for collecting fines for administrative violations.

h) The Ministry of Health shall direct hospitals to coordinate with credit institutions and intermediary payment agencies to collect hospital fees by using non-cash payment methods; striving to achieve the goals defined in the Prime Minister's Decision No. 241/QD-TTg dated February 23, 2018 under which 50% of hospitals in major cities accept payment of hospital fees via banks.

i) The Government Office takes the lead and cooperates with ministries, branches and localities in:

- Arranging for and carrying out inspection and supervision of reform of administrative procedures, adopting the single-window and one-stop shop single-window regimes for handling administrative procedures. Monitoring and urging the deployment of online public services at levels 3 and 4 in ministries, sectors and localities according to Decision No. 846/QD-TTg dated June 9, 2017 and Decision No. 877/QD- TTg dated July 18, 2018 of the Prime Minister.

- Cooperate with ministries, sectors and localities in reviewing and appealing the Prime Minister to issue a Decision on issuance of a list of public services integrated into the National Public Service Portal in 2020 and undertaking this task.

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- Give directives to accelerate the implementation of the method of receiving applications and informing decisions after processing of such applications through public postal services.

- By December 20, 2020, prepare review reports on implementation and results of the implementation of the target of one-hundred percent of schools, hospitals, electricity retail companies, water supply and drainage companies, environmental sanitation companies, postal and telecommunication companies in urban areas in cooperation with banks and intermediary payment service providers to collect tuition, hospital fees or electricity bills ... by using the non-cash payment method with priority given to mobile payment solutions, payment via card-accepting devices for submission to the Ministry of Planning and Investment (Central Institute for Economic Management) before sending a general report to the Prime Minister.

7. Developing an innovative ecosystem, supporting and encouraging start-up businesses

a) The Ministry of Science and Technology shall preside over:

- Completing the legal corridor to comprehensively develop the national innovation start-up ecosystem, and building links between domestic and foreign innovation networks;

- Implementing solutions to improve the capacity of enterprises to absorb and master technologies, attract investments from enterprises in science, technology and innovation; make best use of the National Technology Innovation Fund and the Science and Technology Development Fund of enterprises to give support for technological innovation in enterprises.

b) The Ministry of Education and Training shall take the lead in researching and proposing solutions to develop creative startup spaces in universities.

IV. IMPLEMENTATION DUTIES

1. Ministers, heads of ministerial-level agencies, government-attached agencies and Chairpersons of provincial-level People's Committees:

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b) Regularly examine and supervise progress and assess results of implementation of the Programs and Plans of Action on implementation of the Resolutions on improvement of business environment and national competitiveness at ministries, sectors and localities.

c) Strictly comply with reporting regimes. By June 20 and December 20, 2020, prepare a half-year and annual review and evaluation report on implementation and implementation results for submission to the Ministry of Planning and Investment (Central Institute for Economic Management) and the Government Office for consolidation of general reports to the Government and the Prime Minister in the Government's regular meetings held every six months and at the end of a year.

2. Each sector and locality shall disseminate information on improvement of business environment and competitiveness within their scope of responsibilities. Vietnam News Agency, Voice of Vietnam, Vietnam Television and other press agencies shall actively support ministries, agencies and localities to provide public communication; thoroughly grasping and disseminating the Resolution in all sectors and levels; strengthening the inspection and supervision by media and press agencies on implementation and results of implementation of the Resolution.

3. The Ministry of Home Affairs shall consider integrating a number of criteria for evaluating and ranking the implementation of the Resolution into annual surveys on the administrative reform index (PAR Index) and the satisfaction index of public administrative service (SIPAS).

4. The Prime Minister's working group shall strengthen inspection and urge the implementation of tasks and solutions in the Government's Resolution No. 19 and Resolution No. 02 on improving the business environment and national competitiveness.

5. National Council for Sustainable Development and Competitiveness Improvement shall regularly monitor and assess the performance and results of implementation of the Resolution; appeal the Prime Minister to approve directive solutions.

6. Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises, business and other industry associations shall carry out independent monitoring and evaluation of performance and results of implementation of the Resolution in a regular manner; shall be directly accountable to the Prime Minister.

Vietnam Chamber of Commerce and Industry shall survey, publish PCI and assess the level of satisfaction of businesses in the field of tax, customs, social insurance, access to electricity, etc., combine and integrate the evaluation of the results and impacts of the Government's Resolutions on improving the business environment and enhancing national competitiveness; generalize the problems that businesses propose dealing with; preside over the implementation of the enterprise support program for sustainable development, scaling up the application of the set of corporate sustainability indices (CSI) in the business community; promote private-sector participation in public-private partnerships and capacity building programs for business associations; directly report to the Prime Minister.

7. Prime Minister's Administrative Reform Advisory Council shall conduct surveys on, assess and publish the Report on Administrative Procedure Compliance Index (APCI) on an annual basis./

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PP. GOVERNMENT
PRIME MINISTER




Nguyen Xuan Phuc

[1] According to the ranking by World Economic Forum (WEF), the competitiveness index 4.0 increases from 58 points to 61.5 points, greater than the worldwide average (60.7 point); the rank is moved up from 77^th place to 67^th place.

[2] According to the ranking by World Intellectual Property Organization (WIPO).

[3] According to the rating by the World Bank (WB), the business environment quality is increased from 68.6 points to 69.8 points with 5 out of 10 indices moving up their scores. However, the general standing of our country’s business environment has decreased (from the 69^th place to the 70^th place).

[4] From the 67^th place to 63^rd place with the score slightly increased by 0.12 point (from 3.78/7 to 3.9/7 points) – according to the ranking by World Economic Forum (WEF).

[5] According to the rating of the competitiveness index 4.0, Vietnam stands at the 7^th place in ASEAN after Singapore (the first place), Malaysia (the 27^th place), Thailand (the 40^th place), Indonesia (the 50^th place), Brunei (the 56^th place) and Philippines (the 64^th place).

According to the business environment ranking, Vietnam is ranked the 5^th amongst other ASEAN countries after Singapore (the 2^nd place), Malaysia (the 12^th place), Thailand (the 21^st place) and Brunei (the 66^th place).

[6] Doing Business ranking (see at http://www.doingbusiness.org/)

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[8] Global Innovation Index ranking (see at https://www.globalinnovationindex.org/gii-2019-report)

[9] E-Government Development Index ranking (included in the report of United Nation E-Government Survey, see at https://publicadministration.un.org/egovkb/en-us/Reports/UN-E-Government-Survey-2018)

[10] Grouped into Pillar 1, GCI 4.0

[11] Grouped into Pillar 1, GCI 4.0

[12] Grouped into Pillar 3, GCI 4.0

[13] Grouped into Pillar 6, GCI 4.0

[14] Grouped into Pillar 11, GCI 4.0

[15] Grouped into Pillar 11, GCI 4.0

[16] The list of products subject to specialized administration and inspection in effect at the date of promulgation of the Resolution No. 19-2018/NQ-CP dated May 15, 2018.